WGU D103 CASH FLOW AND FINANCIAL
ANALYSIS TEST 2026 FULL SOLUTION
GUIDE
◉ F.o.b Destination
Answer: The terms for shipping goods which state that title does not
pass until the buyer receives the goods from the common carrier.
◉ F.o.b Shipping Point
Answer: The terms for shipping goods which state that title passes
to the buyer when the seller delivers the goods to the common
carrier who acts as an agent for the buyer.
◉ Finished Goods Inventory
Answer: The costs identified with the completed but unsold units on
hand at the end of the fiscal period.
◉ First-in, First-out (FIFO) Method
Answer: An inventory costing method that assumes that the costs of
the earliest goods acquired are the first to be recognized as cost of
goods sold.
, ◉ Inventories
Answer: Asset items that a company holds for sale in the ordinary
course of business, or goods that it will use or consume in the
production of goods to be sold.
◉ Inventory Turnover
Answer: The number of times on average a company sells the
inventory during the period.
◉ Last-in, First-out (LIFO) Method
Answer: An inventory costing method that assumes that the costs of
the latest units purchased are the first to be allocated to cost of
goods sold.
◉ Loss Method
Answer: An accounting method that debits a loss account for the
write-down of the inventory to NRV.
◉ Lower Limit (Floor)
Answer: In applying the lower-of-cost-of-market method, the market
cannot be valued less than net realizable value less a normal profit
margin.
◉ Lower-of-cost-or-market (LCM)
ANALYSIS TEST 2026 FULL SOLUTION
GUIDE
◉ F.o.b Destination
Answer: The terms for shipping goods which state that title does not
pass until the buyer receives the goods from the common carrier.
◉ F.o.b Shipping Point
Answer: The terms for shipping goods which state that title passes
to the buyer when the seller delivers the goods to the common
carrier who acts as an agent for the buyer.
◉ Finished Goods Inventory
Answer: The costs identified with the completed but unsold units on
hand at the end of the fiscal period.
◉ First-in, First-out (FIFO) Method
Answer: An inventory costing method that assumes that the costs of
the earliest goods acquired are the first to be recognized as cost of
goods sold.
, ◉ Inventories
Answer: Asset items that a company holds for sale in the ordinary
course of business, or goods that it will use or consume in the
production of goods to be sold.
◉ Inventory Turnover
Answer: The number of times on average a company sells the
inventory during the period.
◉ Last-in, First-out (LIFO) Method
Answer: An inventory costing method that assumes that the costs of
the latest units purchased are the first to be allocated to cost of
goods sold.
◉ Loss Method
Answer: An accounting method that debits a loss account for the
write-down of the inventory to NRV.
◉ Lower Limit (Floor)
Answer: In applying the lower-of-cost-of-market method, the market
cannot be valued less than net realizable value less a normal profit
margin.
◉ Lower-of-cost-or-market (LCM)
